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Classify each of the following based on the macroeconomic definitions of saving and investment. A. Dina purchases stock in Pherk, a pharmaceutical company. B. Charles purchases a new condominium in Miami.
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Classify each of the following based on the macroeconomic definitions of saving and investment.

A. Dina purchases stock in Pherk, a pharmaceutical company.
B. Charles purchases a new condominium in Miami.
C. Ana borrows money to build a new lab for her engineering firm.
D. Yakov purchases a certificate of deposit at his bank.

User Clearly
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Answer:

A : Stock - Investment ; B : Condominium - Investment ; C : Lab - Investment ; D : Deposit Certificate - Savings

Step-by-step explanation:

Saving is the amount set aside from income, so as to not get consumed & kept for further usage.

Investment is the addition to capital stock during a period of time.

A. Dina purchases stock in Pherk, a pharmaceutical company : is addition to financial capital stock - So, It is Investment

B. Charles purchases a new condominium in Miami : is addition to real estate capital stock - So, It is Investment

C. Ana borrows money to build a new lab for her engineering firm : is addition to firm capital stock - So , It is Investment

D. Yakov purchases a certificate of deposit at his bank : reflects deposited savings set aside from consumption - So , It is Saving

User Maks
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